WASHINGTON – ITI, the global voice of the tech sector, released the following statement by President and CEO Dean Garfield regarding today’s decision by the European Commission to require Luxembourg to retroactively collect tax from Amazon, notwithstanding an arrangement reached between the two parties:
“Today’s decision by the Commission again raises questions and concerns for companies around the globe that want to do business in the European Union. This is another troubling departure from established channels of multilateral cooperation on tax policy in favor of a unilateral approach that undermines national sovereignty, creates business uncertainty in Europe, and departs from our shared interest in a joint approach to complex cross-border tax issues.
“While we have yet to see all the facts of this case, and we will consider them fairly and rigorously when we do, past decisions by the EU call into question the EU’s commitment to working with the U.S. and the rest of the world on coordinating international tax matters. Lawmakers on both sides of the Atlantic must work together to craft clear rules of the road that create certainty and promote innovation for businesses. At the same time, it is critical that the U.S. government tackle tax reform that modernizes U.S. international tax rules, stimulates economic growth, and creates jobs.”
ITI has been active on ‘state aid’ cases, last year, calling into question the European Commission’s decision surrounding the treatment of Apple under Ireland’s tax laws. Most recently, when the European Commission released its Fair and Efficient Tax System in the European Union for the Digital Single Market, ITI urged the Commission to ensure its own policymaking is consistent with the larger multilateral cooperation. In addition, ITI recently encouraged Congress and the administration to continue to prioritize tax reform so that the U.S. tax system is globally competitive.